XN000022-1993-06-28 — Page 3

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MONDAY, JUNE 28, 1993

"FAILURE TO START THE PROCESS OF DECONTROL WILL MAKE EVENTUAL DECONTROL MORE DIFFICULT AS THE DISPARITY BETWEEN CONTROLLED RENTS AND MARKET RENTS WILL GROW," HE SAID.

TURNING TO PUBLIC CONCERN OVER THE LESS-PRIVILEGED TENANTS OF CONTROLLED PREMISES, THE SPOKESMAN SAID THIS WAS UNDERSTANDABLE.

LAST

"THESE ARE THE 2,100 TENANTS OCCUPYING BED-SPACES. YEAR'S SURVEY CONFIRMED THAT MANY WERE IN FACT PAYING MARKET-LEVEL RENTS.

IT IS ESTIMATED THAT UNDER THE NEW PROVISIONS THESE BED-SPACE

ADDITIONAL TENANTS WILL ON AVERAGE FACE NO

INCREASES

THE IN

FIRST YEAR OF DECONTROL AND VERY MODEST ADDITIONAL INCREASES THEREAFTER.

THE SURVEY CONFIRMED THAT THE AVERAGE CONTROLLED BED-SPACE RENT WAS $279 WHICH REPRESENTED SOME 7.3% OF THE OCCUPANTS' INCOMES.

THE POSSIBLE IMPACT OF ANTICIPATED RENT INCREASES ON THE LESS- PRIVILEGED GROUP HAS BEEN DISCUSSED WITH THE SOCIAL WELFARE DEPARTMENT.

"WE ARE SATISFIED THAT, IN THE UNLIKELY EVENT OF A CONTROLLED TENANT FACING HARDSHIP, THERE IS ADEQUATE SOCIAL SECURITY ASSISTANCE AVAILABLE TO ANYONE WHO CAN PROVE A GENUINE NEED, THE SPOKESMAN SAID.

AFFECTED TENANTS WILL CONTINUE TO ENJOY SECURITY OF TENURE IF THEY PAY MARKET RENTS, HE POINTED OUT.

AFTER RENT CONTROLS ARE PHASED OUT,

ON THE PROPOSAL FOR STATUTORY COMPENSATION FOR TENANTS DISPOSSESSED ON REDEVELOPMENT, HE SAID IT WOULD MORE THAN DOUBLE THE CURRENT RATE.

"IT WILL ALLOW A DISPOSSESSED TENANT TO RENT SIMILAR PREMISES FOR SOME RIGHT MONTHS. IT IS SIGNIFICANTLY MORE GENEROUS THAN THE PREVAILING LEVEL OF CONSENT ORDERS.

"THE ADMINISTRATION IS CONVINCED THAT ITS NEW PROPOSALS ARE FAIR TO BOTH TENANTS AND LANDLORDS AND WILL NOT CAUSE HARDSHIP. FURTHER DELAY IN THEIR IMPLEMENTATION WOULD BE UNFAIR, HE CONCLUDED.

T

ATTENTION NEWS EDITORS:

CITY

AND

AN ASSISTANT SECRETARY OF

NEW TERRITORIES ADMINISTRATION, MR AUGUSTINE K LEE, AND SENIOR VALUATION SURVEYOR,

TAKE FOLLOW-UP QUESTIONS ON MR SN POON, WILL BE AVAILABLE TO

THIS SUBJECT AT 3.30 PM TODAY (MONDAY) AT CNTA HEADQUARTERS, 30TH FLOOR, SOUTHORN CENTRE, HENNESSY ROAD, WAN CHAI.

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